Bitcoin Price Holds Above $111K Despite DeFi Exploit Concerns - BTC Technical Analysis
Ted Hisokawa Sep 03, 2025 09:41
Bitcoin trades at $111,168 (+0.68%) as BTC RSI remains neutral at 45.47 while recent DeFi hack raises sector-wide security concerns despite positive regulatory signals.
Quick Take
• BTC currently trading at $111,168 (+0.68% in 24h) • Bitcoin's RSI at 45.47 signals neutral momentum with bearish MACD divergence • Recent $8.4M Bunni DEX exploit weighs on sentiment despite Trump family's $1M Bitcoin price prediction
What's Driving Bitcoin Price Today?
The cryptocurrency market faces mixed sentiment as Bitcoin maintains its position above $111,000 following a series of contrasting developments. The most recent catalyst affecting BTC price comes from the September 2nd Bunni DEX exploit, where hackers drained $8.4 million from the Uniswap v4-based platform due to liquidity management vulnerabilities. This security breach has reignited concerns about DeFi protocol risks, creating a cautious atmosphere around digital assets.
However, Bitcoin's resilience above the $111,000 level demonstrates the market's maturity in compartmentalizing DeFi-specific risks from Bitcoin's core value proposition. The recent decline from August's peak of $124,000 to current levels appears to be more influenced by natural profit-taking rather than fundamental weakness.
Earlier this week, Eric Trump's prediction that Bitcoin will reach $1 million provided a bullish counternarrative at the Bitcoin Asia conference. While such predictions often generate short-term excitement, the market has remained relatively measured in its response, focusing instead on technical levels and immediate catalysts.
The announcement of Tether's USDT launch on Bitcoin via the RGB protocol represents a significant technical advancement that could enhance Bitcoin's utility as a settlement layer. This development potentially strengthens Bitcoin's infrastructure narrative, though its immediate price impact remains limited.
BTC Technical Analysis: Mixed Signals Emerge
Bitcoin technical analysis reveals a market in transition, with conflicting signals across different timeframes. The most notable indicator is Bitcoin's RSI at 45.47, placing it firmly in neutral territory and suggesting neither overbought nor oversold conditions. This BTC RSI reading indicates that Bitcoin has room to move in either direction without hitting extreme levels.
The MACD analysis presents a more bearish picture, with the main line at -1693.02 and the signal line at -1488.54, creating a negative histogram of -204.47. This bearish MACD momentum suggests that selling pressure may continue in the near term, though the relatively modest divergence indicates this isn't a strong bearish signal.
Bitcoin's moving averages paint a mixed picture that reflects the current consolidation phase. While the BTC price remains above the crucial 200-day SMA at $101,449, it's trading below both the 20-day ($112,833) and 50-day ($115,621) moving averages. This positioning suggests that Bitcoin is in a short-term downtrend within a longer-term bullish structure.
The Bollinger Bands analysis shows Bitcoin trading in the lower half of the range, with a %B position of 0.36. The upper band at $118,932 and lower band at $106,733 provide clear boundaries for the current trading range, with the BTC price closer to support than resistance.
Bitcoin Price Levels: Key Support and Resistance
Based on Binance spot market data, Bitcoin support levels are clearly defined with immediate support at $107,255, which also serves as the strong support level. This convergence makes $107,255 a critical level to watch, as a break below could signal further downside toward the Bollinger Band lower boundary at $106,733.
On the upside, BTC resistance faces its first test at $119,217, representing the immediate resistance level. The more significant challenge lies at the strong resistance of $124,474, which aligns closely with Bitcoin's recent highs and represents a key psychological barrier.
The current BTC/USDT trading range of $108,393 to $111,782 over the past 24 hours demonstrates relatively contained volatility, with the Average True Range (ATR) of $2,925 suggesting moderate price swings are expected.
The pivot point at $110,448 sits just below the current BTC price, indicating that Bitcoin is attempting to maintain a bullish bias above this level. Traders should monitor whether Bitcoin can reclaim the $112,833 level (20-day SMA) to confirm short-term bullish momentum.
Should You Buy BTC Now? Risk-Reward Analysis
The current setup presents different opportunities depending on your trading approach and risk tolerance. For conservative investors, the proximity to Bitcoin support levels at $107,255 offers a relatively favorable risk-reward ratio. A position near current levels with a stop-loss below $106,700 would provide approximately 4% downside risk against potential upside to $119,200 resistance.
Aggressive traders might wait for a clear break and retest of either the $107,255 support (for short positions) or the $112,833 resistance (for long positions). The neutral BTC RSI provides flexibility for moves in either direction, making breakout strategies potentially more reliable than range-bound plays.
Medium-term holders should consider that despite the recent pullback, Bitcoin technical analysis still shows an overall bullish trend. The key factor is whether Bitcoin can maintain its position above the critical $107,255 support zone while working through the current consolidation phase.
Risk management remains crucial given the mixed signals from Bitcoin's technical indicators. The bearish MACD momentum conflicts with the neutral RSI, suggesting that any position should be sized appropriately and accompanied by clear exit strategies.
Conclusion
Bitcoin's current position above $111,000 demonstrates remarkable resilience despite recent security concerns in the broader crypto ecosystem. While the BTC price faces near-term challenges from bearish MACD momentum and overhead resistance, the neutral RSI and strong support levels suggest this consolidation phase may resolve favorably for bulls. Traders should focus on the critical $107,255 support level over the next 24-48 hours, as its defense or breakdown will likely determine Bitcoin's short-term direction toward either the $119,200 resistance or deeper support zones.
Image source: Shutterstock.jpg)